For the Attention of the SIMS FMS6 Operator

For the Attention of the SIMS FMS6 Operator

SIMS FMS6

USER BULLETIN No. 143

(ALL FMS Schools)

March 2013 – YEAR END 2012/13

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Financial Services for Schools Helpline

Tel: 01992 555753 (Option 1)

Fax: 01992 555727

Email:

YEAR ENDING

31st March 2013

PROCEDURES FOR

ALL FMS SCHOOLS

This follows on from Bulletin 139 Preparing for Year End

The key to meeting the deadline is good planning

Closedown of Accounts 2012/2013

March Accounts

Accruals

Dealing With Revenue Balances (B01, B02, B06)

Dealing with Capital Balance (B03 and B05)

Year End Returns

Electronic Returns 19

To Export the HCC Year End Return

Backing up FMS6

Closing the Financial Year

Closedown of Accounts 2011/2012

This bulletin is intended to be read in conjunction with the booklet “Financial Guidance Notes for the production of 2012/13 Year End Statement of Accounts and Consistent Financial Reporting Return” (The “Blue Book”) produced by the School Funding Unit.

We strongly recommend that you read the booklet before beginning the year end process.

If you require advice or support for the Year End process please contact the Helpline on 01992 555753 (option 1) or e-mail

March Accounts

 Please make sure FMS6 has been upgraded – Bulletin to follow

 Ensure all March Transactions have been posted

 Ensure that all inter school transactions are completed before 15th March 2013, and no such transactions are included within your Debtor or Creditor Control Accounts or unreconciled transactions listing

 Complete Bulletins 139 Preparing for Year End / 140 Setting up the LMSFR 10 & 11 and 141 The New I18 Ledger Code

 Complete final cheque run on or before the 31st March 2013

 Reconcile the School Bank(s) to 31st March 2013

 Ensure that all 2012/2013 Petty Cash transactions have been posted. Balance Petty Cash with the cash in the tin. Print Petty Cash transactions listing (Reports | General Ledger | Petty Cash | Transactions Listings)

 Print the VAT Submittal Report for period 12 - March 2013

 Enter the VAT Transfer Journal

 Print VAT reports as you would for your normal monthly routine

 Complete any required virements / budget allocations

 Print normal month end reports

 ALL Schools that are not part of Barclays Pooled Banking will need to print their Bank Statement as at the 31st March 2013 and Fax to The School Funding Unit. 01992 555 699

 Complete a System Reconciliation – available on the Grid at:

Please call the Helpline if you require assistance with the System Reconciliation.


March 2013 Accounts Completed?

Accruals

Detailed information about what should be included as accruals, and what should be carried forward as part of your 2012/13 carry forward is provided by the School Funding Unit in the ‘Financial Guidance Notes for the production of 2012/13 Year End Statement of Accounts’

Analysis of Accruals

There are changes to the way in which accruals are recorded throughout Local Government accounts and there is now the requirement that accruals are recorded by category i.e. NHS, Other LAs, Central Government.

In order to complete the “whole of government accounts” (UK PLC) in a consistent format in line with all other Local Authorities and public bodies we are having to introduce a level of analysis to enable accruals to be collated correctly.

Accruals will fall into 3 categories

?Government agencies (analysed in detail)

?HCC (in certain circumstances see below)

?Other entities and individuals (OTHER)

…..consequently all accruals will now need to be prefixed.

• This information will be used in the consolidation of the Hertfordshire County Council accounts.

• Please refer to the accruals spreadsheet ( Tab) to make yourself aware of those organisations.

This can be found on the grid at:

• Pre-fixes have been included in the Accruals spreadsheet for this reason.

• You will need to select the supplier from the drop down. This will automatically insert the prefix into the next column.

• If the supplier or income source does not fall into the Local Government Organisation category you must select Other and enter this into the Reference Box instead.
• The prefixes and the description will need to be added in the line detail within your FMS journal.

Accruals Spreadsheet

FMS Reversing Journal

Focus | General Ledger | Manual Journal Processing

 Click on Add

 Select Normal journal

 Place Tick in Reversing journal

 Click on Next

 Select Period 12

 Reversing in Next year Period 1

 Enter the line Details for the journal by clicking on the Add

• A copy of the Accruals Spreadsheet will need to accompany the 4 journals produced from FMS and sent to the School Funding Unit with your year end documents.

Guidance – Who is the end supplier?

Overtime and casual hours to be paid to staff use Other / you actually owe the employee
Energy Bills use Other / you actually owe the gas or electric company
Accruals from the Mouchel statement use Other / you actually owe Mouchel
Grounds and Contract Cleaning use Other / you actually owe the maintenance companies
Anything on the March Year End Central Billing use HCCDD / – this has been set up specially for this instance
County Supplies/Hertfordshire Business Services use HCCHBS / this has been set up specially for this instance

The spreadsheet is available to download from the Grid to record details of your accruals

prior to posting on FMS.

Accruals are posted using the Reversing Journal facility (reversing them to Period 1 of the new financial year.)

Accruals must be posted excluding any VAT.

You will need to create only 4 separate journals in FMS, one for each accrual type:

 Creditors

 Debtors

 Receipts in Advance

 Prepayments

Accruals are posted as follows:

Accrual Type / Debit / Credit
Creditors / Appropriate EXPENDITURE Ledger Codes & Cost Centres / Sundry Creditors
(SC)
Debtors / Sundry Debtors (SD) / Appropriate INCOME Ledger Codes & Cost Centres
Receipts In Advance / Appropriate INCOME Ledger Codes & Linked Cost Centres / RIA
Prepayments / PP / Appropriate EXPENDITURE Ledger Codes & Cost Centres



Remember to enter the specific prefix and the full description for each line entry on the FMS journal, (e.g. E1920 - HertsCC - Catering Contract Feb/ Mar 13).

Your Year End will be rejected if all the information does not appear in the journals.

Save each journal but do not post until you are sure ALL accruals have been included.

The School Funding Unit will accept a printed copy of the four accrual journals and the Accruals Spreadsheet – negating the need to complete the LMSFR6 and 7 – providing each line of the journal includes an appropriate detailed description and the correct prefix.

Please use the journal print from the Manual Journal Processing Screen as this report shows the full description

Focus| General Ledger| Manual Journal processing| Highlight the journal| Click on the print Icon

School Funding request an emailed copy of the excel Accrual spreadsheet.

Do NOT send the journal print from Journal Review.

Journeys

Journeys taking place after the 31st March 2013 (Next Financial Year)

 Journey Income should be carried forward as a Receipt in Advance (RIA) for all income received to date against each individual trip. These should be set up with the prefix Other for monies received from parents

 Journey Expenditure should be treated as a Prepayment (PP) for all expenditure incurred to date against each individual trip.

Journeys with HCC centres, such as Cuffley Camp will be treated as an exception to the “no accruals with HCC” rule. Therefore, transactions made to Cuffley Camp, Hudnall Park or Snowdonia Centre should be:

Prepayment – with a prefix of E1920 – Hertfordshire County Council – for deposits paid

 NOTE: Do not net off the income and expenditure and accrue just the balance

Journeys that have taken place before the 31st March 2013 (This Year)

Journeys that have already taken place should be reconciled to establish if there are any further liabilities or income due for the trip. Once this has been established the following transactions will need to be posted:

 If there is still Income to be received for a particular trip, this will need to be transacted as a Debtor (SD) to the appropriate trip.

 If there are still outstanding invoices to be paid in relation to a trip, these will need to be put through as a Creditor (SC) to the appropriate trip.

 NOTE: Individual Debtor and Creditor journals must be raised rather than accruing for the remaining balance of the trip.

Hertfordshire Business Services (HBS)

• HBS (County Supplies) invoices dated February can only be paid up to the 15th March – this is to ensure they clear the bank account by 31st March 2013.

• Any outstanding invoices should be accrued & prefixed HCCHBS.

 Remember

 Do NOT set up a debtor or creditor for VAT. FMS automatically accounts for this.

 Do NOT set up a Receipt in advance for any funding from the LA

 Any unspent Devolved Formula Capital will form part of your carry forward and must be re-allocated to be spent in your budget for 2013/14 – this will be in addition to your 2013/2014 allocation.

 DO NOT ACCRUE ANY DEPARTMENTAL BALANCES, they form part of your carry forward and will therefore need to be allocated accordingly in next years budget.

.

 SAPG - Schools may receive the income for the SAPG up to 31st August, this should not be accrued for but fall into the balances


Accrual Journals Posted?

At this stage it is advisable to run a System Check

System Check

 Reports

 Year End

 Select System Check

 Financial year is 2012

 Select ok

 Print Report

Check through any discrepancies to see if there is any reason why the year will not close successfully.


System Check run ?

Dealing With Revenue Balances (B01, B02, B06)

You will need to ensure that Revenue Balances are apportioned correctly on Tab 5 Balances of the CFR Preliminary Report.

These balances will show how you are carrying forward any revenue money into the new financial year 2013/14.

B01 Committed Revenue Balances

 Earmarked Balances

 Formal Commitments made from the 12/13 budget for which no creditor has been raised.

 Monies carried forward to support 13/14 revenue projects & action plans.

 Any Revenue Deficit at 31st March 2013

 Consortia Balances (SAPG , 16-19 Partnership)

B02 Uncommitted Revenue Balances

 The remainder of your revenue balance

B06 Community Focused Extended School Revenue Balances

 Any balance relating to COMMUNITY FOCUSED extended school provision.

 This is the balance of income on lines I16 & I17 less expenditure on E31 & E32 (plus and b/f B06 from 11/12)

CFR Tab 5 / Original Balance / Apportioned Balance
B01 / B01
B02 / B02
B06 / B06
Total / Total

Once you have determined what the balances for each of the above are, you will need to apportion the balances:

 Reports

 CFR

 Select Preliminary CFR

 Tab 5 – Balances

All revenue balances will appear in B02 Uncommitted balances.

If you have a committed balance it will need to be apportioned to B01, in the light grey box.

The monies that you apportion into B01 will then reduce your balance in B02.

Dealing with Capital Balance (B03 and B05)

It is important that Capital is dealt with correctly. Please refer to the School Funding Unit booklet ‘Financial Guidance Notes for the production of 2012/13 Year End Statement of Accounts and Consistent Financial Reporting Return’ for information about accruing for Capital.

There should not be any overspend on Capital. If you have spent more than you have been allocated you will have to move money from revenue to cover the overspend – ‘Capital Shuffle’

You will need to ensure that Capital Balances are apportioned correctly on Tab 5 Balances of the CFR Preliminary Report.

Any unspent Capital balances should be recorded as follows:

B03 - Devolved Formula Capital Balance

 This is the balance of Devolved Formula Capital for 10/11, 11/12 & 12/13

B05 - Other Capital Balances – Balances to carry forward for the purpose of future capital expenditure.

Privately raised capital e.g. capital donations, privately raised specialist schools capital funding or monies transferred from revenue to fund future capital projects.

 Privately raised capital funds

 Capital shuffle - Monies transferred from revenue, prior to the year end to fund imminent capital projects

Throughout the year, all transactions posted to Capital codes will be automatically recorded against B05, and the amount showing in the calculated column is the net value of these transactions.

Once you have determined what the balances are for each of the above, you will need to apportion the balances in the same way as you did for B01 (Please see page11):

 Reports

 CFR

 Select Preliminary CFR

 Tab 5 – Balances

Type the balances into the apportioned column against B03.

This will automatically reduce the balance against B05, but not affect the overall Capital Balance.

Your CFR Tab 5 Capital Balances should agree with the Balances on your Capital Return.

CFR Tab 5 / Balance / Capital Return / Balance
B03 / B03
B05 / B05
Total / Total

 Remember

 After the Capital Return has been submitted, only transactions included on the return should be entered into FMS6. Any new transactions (i.e. not included on the Capital Return) should not be posted to capital on FMS6 until the new financial year. If you are unsure about this please contact the Helpline for advice.

 The Capital Return MUST agree with the CFR Return and the Income and Expenditure report in FMS6 at the year end. If your Capital Return and CFR Capital balances are not the same please call the FSS Helpline for support - 01993 555753 (option 1)

 The Capital Return can be re-submitted at any time up to the 21st March 2013.

 Please remember that HCC will not accept negative balances on Capital. If this is the case you should make a Revenue Contribution to capital - Capital Shuffle.

 You should only move Revenue to Capital if a project is completed, has already started or is imminent i.e. planning permission has been received, tendering is complete etc.

 Once Revenue has been moved to Capital you CANNOT move it back in future years.

 Voluntary Aided schools do NOT need to submit a Capital Return


Capital Balances on CFR report match Capital Return submitted?

Year End Returns

All schools are required to submit an Electronic Year End and CFR Return as well as hard copies of the reports. Before doing this, you must ensure that your balances are correct. For further guidance on the breakdown of Balance Lines B01 – B06, please refer to the March 2013 booklet ‘Financial Guidance Notes for the Production of 2012/13 Year End Statements of Account & CFR Return’ issued by the School Funding Team.

Please check the following:

• There should not be any balances in I14 as this code is no longer used

• On the CFR Report – you have completed the contact name, e-mail and telephone number in the Report Criteria box

• The box for Complete Financial Year is ticked.

• IMPORTANT - On each tab of the CFR return there are no lines displaying an If there are, highlight the line to display the reason for the error at the bottom of the table. Your accounts will need correcting before you can proceed.

• If any lines are displaying a ! in a yellow triangle, highlight the line and click on the edit icon on the right. Type an explanation for the query into the explanation text box.

• The CFR report balances to Balances & Reserves (CFR Tab 5 - balances; total for “actual” = B&R Current Balance Totals)

• The balances B01 B02 B03,B05 and B06 on Tab 5 are analysed and shown in the correct box i.e. Capital, Revenue and Extended Schools (Community) etc THESE BALANCES MUST BE EXACTLY THE SAME AS YOUR DECLARATION SHEET. Make sure that you keep detailed information of any committed balances in B01 in order to allocate accordingly in next years budget.

• Check that the total in the “actual” column on CFR Tab 5 (balances) = I&E report page 5 “Net Assets” and “Total Balances B/Fwd” + “In Year Surplus.”

• B03 and B05 , Capital Grant balances (see page 13 of this bulletin and the Blue Book)

• B06 Community Extended Schools balance. This must NOT include pupil focused activities

• The balances on B03 and B05 are the same as those submitted on the Capital Return in March.

Make any corrections and reprint your CFR Return. / 
CFR Revenue, Capital and Community Extended Schools balances checked and correct?

PRINT & SUBMIT COPIES OF THE FOLLOWING REPORTS

BY 17th April for Secondary Schools / BY 30th April for Primary Schools:

 The reports must be printed simultaneously and at the same time as the CFR and Year End export routines are run:



• CFR Income & Expenditure Report

• Debtor & Prepayment Journals and Accruals Spreadsheet

• Creditor & Receipts in Advance Journals and Accruals Spreadsheet

• LMSFR8 or Print the User Defined Report

• LMSFR9 or Print the User Defined Report

• LMSFR 10 & 11 or Print the User Defined Report

• Balances & Reserves

• Unreconciled Transactions Listing

• Photocopy of the 31st March 2013 Barclays (or other) Bank Statements(s) for all accounts holding Public money

• Aged Creditor Report

• Aged Debtor Report

• Consortia Balance Return – if applicable – The Grid – School Funding Unit

• Declaration Sheet – The year end reports must be accompanied by the completed Declaration Sheet available from the School Funding Unit website,

Before sending the above reports to School Funding, please check the following: 

• The Balances and Reserves Current Balance must match the final balance on Page 5 of the Income & Expenditure report and final balance on the Preliminary CFR report (tab 5) & Declaration

• The Balance on your final Bank Statement(s) plus or minus your unreconciled listing must equal the Bank Balance on your Balances & Reserves & Current Ledger Balance on the Bank Reconciliation

• The total of Debtors + Prepayments less the total of Creditors + Receipts in Advance, plus or (minus) balances of any other control accounts (excluding VAT control a/c) must equal the total of Other Balance Sheet Accounts on your Balances & Reserves

• The date of printing and time of the reports must be noted on the declaration sheet confirming that all the reports have been printed concurrently. Each report attached should be initialled.

• When completing the declaration sheet it is vital that figures are not rounded up or down. The exact figures including the pence MUST be used.

• The Balances on the Declaration MUST be the same as the CFR Balances (tab 5).

• Check that the total income on each ledger group on the LMSFR8 is the same as the equivalent line on the CFR & I&E Reports

• Check that the total expenditure on the LMSFR 9 is equal to or greater than the income. If there is an excess of income over expenditure the funding could be clawed back.

 If the signed declaration is not received, your return will be rejected.